Hong Kong Treasury Bureau: The total value of Hong Kong's assets and wealth management business exceeded HK$35 trillion by the end of 2024

The Zhitong Finance App learned that Hong Kong's Secretary for Treasury Xu Zhengyu said in his speech at the launch ceremony of the SPDB Global Wealth Management Platform today (August 8) that by the end of 2024, the total value of Hong Kong's asset and wealth management business exceeded HK$35 trillion, an increase of 13% over the previous year, and the net capital inflow surged by 81%. Private banking and private wealth management businesses grew particularly well, with assets under management increasing 15% year over year to HK$10.4 trillion. In June of this year, Hong Kong's private equity fund management capital surpassed US$237.4 billion, ranking second in Asia, after the Mainland.

Furthermore, according to the latest “Global Financial Center Index” report, Hong Kong ranks first in the world in “investment management” and “financing”, fully demonstrating its position as the Asian wealth management center preferred by international investors. According to industry statistics, Hong Kong is also the largest hedge fund center in Asia, and is expected to become the world's largest cross-border wealth management center within the next few years.

Xu Zhengyu believes that in order to maintain the momentum of continuous business growth, strengthen cooperation with the Mainland and the Guangdong-Hong Kong-Macao Greater Bay Area, it is essential to expand the coverage of the Hong Kong market. The “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” clearly supports Hong Kong's position as an international financial center, a global offshore RMB business hub, an international asset management center and risk management center, and strives to build a green finance center in the Greater Bay Area and an investment and financing platform serving the “Belt and Road” initiative. In terms of cross-border financial services, Hong Kong has achieved remarkable results, including the development of cross-border account opening services and cross-border banking links.

He mentioned that as of June of this year, the Bank of Hong Kong has provided more than 360 witness account opening service outlets to help Hong Kong residents open more than 430,000 mainland bank accounts. The Hong Kong Treasury Bureau will continue to push forward progress and discuss with the Mainland supervisory authorities the possibility of increasing participating banks in due course.

In addition, Cross-border Banking Connect (Guangdong-Hong Kong-Macao Greater Bay Area Cross-border Banking Connect) allows residents of Hong Kong, Macau and nine cities in Guangdong Province to invest in financial products within the Greater Bay Area across borders. The Hong Kong Treasury Bureau will continue to optimize relevant measures, enrich investment options, promote the interconnection of financial markets in the three regions, help the industry expand business opportunities, give full play to the potential of cross-border financial management, and consolidate Hong Kong's position as an international asset management center. As of June of this year, more than 160,000 individual investors have participated in Cross-border Wealth Management Connect, and the amount of cross-border remittance has exceeded RMB 110 billion.

In terms of sales networks and channels, Hong Kong has reached mutual fund recognition arrangements with the Mainland and other markets. A total of 81 funds have been approved by the regulators of the two regions, with a cumulative net subscription amount of over RMB 120 billion. At the same time, mutual recognition arrangements for mainland and Hong Kong funds have been further optimized, including easing the limit on the sales ratio of mutual recognition funds and allowing Hong Kong mutual recognition funds to transfer investment management functions to overseas asset management agencies in the same group as managers, significantly increasing the diversity and sales scale of fund products.

In terms of family office business, the Hong Kong Treasury Bureau aims to help no less than 200 family offices set up or expand their business in Hong Kong by the end of 2025, and build a thriving ecosystem of family offices and asset owners around the world. According to current progress, not only will the target be reached, but it will also be exceeded.

Xu Zhengyu said that under the “one country, two systems” framework, Hong Kong has the unique advantage of supporting the motherland and connecting the world. It combines mature financial infrastructure with freely circulating capital, making it the preferred location for wealth owners to seek investment opportunities. As the world's largest offshore RMB business center, Hong Kong's connectivity mechanism helps global investors invest in the mainland market through Hong Kong. In the future, Hong Kong will continue to enhance its market competitiveness through various policy and project innovations.